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Free Markets

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In the world today, there exists divided opinion over the different forms of market patterns best in practice. Some scholars are for the opinion that capitalism is best in practice. Others hold that liberalism or classical liberalism is the best choice for a market. These three different markets among other markets are the popular forms of market existent in the world today. Different economists of the past have argued differently over this issue. A closer study in the debate, however, reveals that free markets are preferred more than other forms of markets. Having studied various forms of markets in class, I am well informed to express opinions in choice of a market system. The free market is indeed a perfect choice; an ideal choice of a market system. Through this paper, detailed argument will be presented in the favour of free market system while the weaknesses of other forms will also be unravelled.  

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Out of numerous market forms existing today, free market system is the most considerable. There are various reasons as to why such a statement is more or less a fact. Each of the reason for this choice of a market will be extensively discussed. However, in this paper, only the basic reasons that give weight to free market will be studied. These are also the main differentiating points as to why the free market is superior to others and why it should be considered.

Ease of entry into market

One of the acknowledged features of this market is the ease of entry. In other market systems, new entrepreneurs are faced with stiff challenges of protocol and market competition upon entrance. Most of these new entrants in the market systems die out soon. However, in free market systems, new business ventures find their place in the market with ease. In a free market, businesses will establish themselves in least time possible and with little or no difficulty. They establish themselves easily. Therefore, the ease of entry of new businesses in free markets makes the system a considerable and unique system.

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Fairness in distribution of wealth and Resources

Unlike the controlled market systems, resources and wealth in free markets are distributed as determined by prevailing economic activities. Important features of transactions such as prices are left to be determined by forces of demand and supply. Other features of production such as land and capital are distributed with equity by means of this market system. Through free market operations, resources concentrate in one place are dispersed to locations of minimal concentration of the same resource. This is enabled through the free exchange operation within free market system.

Economic Equilibrium

This is another acknowledgeable feature of free markets. In the operation within a free market, important market determining forces are left to be determined by forces of demand and supply. This way, there is equilibrium in the economy. Decisions in this form of markets are also depended on the mutual wave of the comprehensive market players. This is unlike controlled market systems where decisions and policies are depended on one or a few market players.

To conclude, a thorough study across the existing market systems today is necessary prior to any choice of a market. However, results of such a study prove through facts that free market economies are of choice, anytime, anywhere. The discussion presented in this paper provides a comprehensive justification of my opinion that free markets are the best option to choose in any economy.

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